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Wall Street indexes drop 1% due to tech and Iran War worries
Investors are uncertain as the major U.S. indexes closed more than 1% down on Wednesday. Chipmaker shares have continued to decline and renewed tensions between?the U.S. After one of the largest exchanges of gunfire overnight in the Middle East War since April, President Donald Trump announced that the U.S. will attack Iran "very hard". Nvidia, Broadcom and other semiconductor companies were the main drags on the S&P 500. Investors are concerned about the stretched valuations in the semiconductor sector. The Cboe Volatility Index has advanced for the second consecutive day. In recent days, volatility has increased. Tom Hainlin is an investment strategist with U.S. Bank Wealth Management, based in Minneapolis. He said that investors were also "pricing in maybe a higher rate of interest" following recent economic data, and they are worried about the war. He said, "Perhaps this conflict will continue into the late summer or mid-summer." At its policy meeting in June, the Federal Reserve is expected to keep interest rates unchanged. Investors have priced in at least a 25 basis-point rate increase by the end the year. The S&P 500 fell 119.00 points or 1.61% to 7,267.65, while the Nasdaq Composite dropped 505.31 or 1.97% to 25,169.50. The Dow Jones Industrial Average dropped 952.04 points or 1.87% to 49,920.07. The U.S. employment report on Friday was better than expected. Data showed that on Wednesday, U.S. Consumer prices rose 4.2% over the past 12 months, which is the highest increase since April 2023. The Middle East conflict has also increased the price of energy products and gasoline. According to a survey of economists, the pace of growth was in line with predictions. Super Micro Computer, among other decliners fell after it announced plans to raise $7 billion via a series equity and equity-linked finance transactions in order to fund component purchases needed for its growing AI servers demand. Healthcare, real estate, and consumer staples have all benefited from the rotation of shares in high-flying technology companies. SpaceX's much-hyped listing on Friday of $1.75 trillion, which aims to raise a record $75 Billion, could also put pressure on U.S. stock prices as fears mount over excessive optimism in tech. Shares of XPO, J.B. 'Hunt, and Old Dominion, among others, also fell after Amazon announced its expansion of less-than truckload freight services in America. The industrials sector led the declines. Caroline Valetkevitch reported from New York, Joel Jose from Bengaluru and Twesha Dkshit in Bengaluru. Additional reporting was provided by Twesha Dkshit and Sruthi Shankar in Bengaluru. Shinjini Gregorio and David Gregorio edited the article.
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India considering Canada as potential crude oil supplier, envoy says
India is looking at Canada as a possible 'crude oil' supplier, said the High Commissioner Dinesh Patnaik on Wednesday, speaking at the Global Energy Show, in Calgary, Alberta. He added that Canada has new refineries designed to process heavy crudes, which makes Canadian grades an attractive option. Patnaik stated that officials from both countries meet regularly to discuss the?opportunities of sourcing Canadian energy. He also said that investors are still cautious about Canada's project and regulatory approval processes. This could have an impact on the pace of energy collaboration. Separately, Abu Dhabi National Oil Company'said Tuesday that it was 'exploring opportunities' in Canada’s upstream natural gas and liquefied sectors via XRG. Canada is the fourth largest crude oil producer in the world and ranks fifth for natural gas production.
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Port authority reports that Panamanian and Barbadian vessels were damaged in an attack on Ukrainian waters.
The Ukrainian Ports Authority reported on Wednesday that two vessels flying the Panamanian and Barbadian flags had been damaged by an attack while they were moving along Ukraine's Black Sea navigation corridor. According to the authority's Telegram post, one vessel is headed towards the port of Odesa - a vital port for Ukrainian exports - with a cargo?of metal while the other was carrying grain and had already left the port. Both vessels were operating in the navigation corridor set up by Ukrainian authorities to allow ships travel from the 'Black Sea' to Romanian ports along the 'Danube River. Oleh Kiper said in Telegram that Russian drones were responsible for the attacks. The Russian Defence Ministry did not respond immediately to a comment request. Ports Authority said that a fire broke out on one of the vessels, but it was quickly put out by the crew. No injuries were reported and both ships were able continue their journeys. Kiper, writing on 'Telegram', said that the enemy continues to terrorize the?peaceful Odesa Region and tries?to disrupt?the operation of the Ukrainian marine corridor. Kiper said that "several waves of Russian drones" had also attacked the south Odesa region and struck civilian targets as well as energy infrastructure. Bill Berkrot edited the report by Ron Popeski, Oleksandr Kozoukhar and Bill Berkrot.
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Iran War Anxiety Sends Global Container Shipping Rates Soaring
Costs of shipping goods from Asia to America have doubled since the start of the Iran War, due to a spike in fuel prices and a surge in demand by importers worried that costs will continue to rise as the conflict continues. Peter Sand, Chief Analyst at freight pricing platform Xeneta, said: "If you're looking for a way to gauge how serious you should take the energy crisis threat, then look at container shipping instead of?oil prices?because that risk is more clearly priced into the spiraling rates." This dynamic could feed into the already high inflation rate in the United States and represents a major challenge to the U.S. Administration of President Donald Trump since it began its war against Iran. U.S. Energy Sec. Chris Wright stated on Friday that in order to lower fuel prices, a solution with Iran is needed to increase oil flow through the Strait of Hormuz. According to the most recent weekly Drewry World Container Index (WCI), the off-contract spot price to send a container of 40 feet from Shanghai to Los Angeles on Thursday was $4,565, while the rate for Shanghai to New York was $5,505. Xeneta's and Drewry's Asia-to-U.S. Spot Rates are both up by almost 100% since the Iran Conflict began at the end February. However, they remain well below the $16,000 high of the COVID Pandemic that prompted a spree-buying frenzy by consumers. BUNKER SPIKE FUEL The U.S.-Israeli attacks on Iran, which have been raging for over 100 days without an end in sight - choking off the flow of oil via the Strait of Hormuz – the normal conduit for nearly?20% of world supply - are causing tensions to escalate. As a result, global oil reserves and emergency supplies are rapidly diminishing. Fuel analysts and maritime specialists warn that it may take a year to restore bunker fuel supply to normal, even if Trump can quickly seal an Iran?deal. Although there is no shortage of "bunker fuel" (a tar-like fuel found at the bottom of the barrel) used by marine vessels currently, the supply has been reduced and the fuel is being diverted to areas that are less affected by Iran's war. These disruptions, combined with some 'frontloading' by shippers, contributed to the price of this very-low sulfur?fuel oil (VLSFO), which rose to $845 on Tuesday across 20 major fueling centers since the start the Iran War, according to global marine fuel publisher Ship & Bunker. Prices were wildly different. Prices varied wildly. They were $1,211 at Fujairah in the United Arab Emirates, where ships transporting oil and fuel to the Gulf refuel. In Singapore, they were $770.50; in Rotterdam, Europe's main hub, $676; and in Los Angeles, the home of the busiest U.S. port, $918. Analysts said that bunker fuel can make up as much as 60 percent of the cost of a container vessel's voyage. Therefore, even small changes in price can cause freight rates to rise above what demand would warrant, they added. Gisele Wieddershoven of Blue Water Strategy, an energy and maritime advisory firm, said that if Hormuz is closed or only partially accessible in the second half 2026, there will be shortages, but not everywhere. Sea-Intelligence Maritime Analysis estimates that the Middle East conflict added $5.5 billion to bunker fuel costs since late February. Container carrier Hapag-Lloyd spends up to $50 million per week more just in order keep its ships moving. Some carriers, including?MSC and Maersk, have passed on some of these costs to their customers by adding emergency fuel surcharges to spot shipments. Many vessel operators are incorporating these costs into their annual contracts with customers on July 1. Steve Hughes, CEO at HCS International - a company that specializes in automotive shipping and sourcing - said, "Importers once again are?racing against the clock" to prevent higher costs. FACTORIES SQUEEZED Zac Rogers is the lead author of Logistics Managers' Index. This index provides an early indication of U.S. economic activity. He said that "there will be much less fuel used to move ships, and also less fuel needed to run factories that produce the components for filling up these ships." Collin Shaw of MEMA Original Equipment Suppliers, the president, stated that some vehicle part suppliers are frontloading raw material used to manufacture plastics and resins. In ?South and Southeast Asia, it is becoming more costly to replace the ?Middle East crude oil and liquefied-natural-gas-derived products in everything from plastic packaging to synthetic fabric. Henning Gloystein is the managing director for energy, climate, and resources at Eurasia. He said that some?factory operators may be forced to decide between closing down or losing money. He said that the "feeder ship" services, which shuttle goods from these factories to major port for global distribution, are also at risk of being reduced to conserve fuel for more lucrative shipping routes. Gloystein stated that the fuel shortage is more a result of high prices than a lack of supply. The effect is the exact same. (Reporting and editing by Rich Valdmanis, Aurora Ellis and Rich Valdmanis; Additional reporting and editing by Kale Hall and Mike Colias)
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Riyadh Air, a Saudi-backed airline, lands its maiden flight amid the Iran conflict
Saudi Arabia's Riyadh Air, a new airline in Saudi Arabia, launched its first London flight on Wednesday using its new Boeing fleet. CEO Tony Douglas played down the impact of Iran conflict saying that the startup would benefit if travellers avoided other parts of Gulf. As the aviation industry struggles to cope with the impact of war in the Middle East, and rising jet fuel prices, the state-backed carrier has launched its first service from London Heathrow using one of its Boeing 787 Dreamliners. Douglas claimed that Riyadh Air’s smaller fleet offered some protection from the crisis. Douglas said, "I am glad that I don't have a fleet 200 aircraft because it is a different challenge." When asked about launching in conflict situations, Douglas replied, "It's a little bit different." Douglas stated that the company plans to deliver its aircraft to 22 cities before March 2027. Since the start of the war in late February, air strikes have caused airport closures, and travel disruptions for airlines across the Middle East. Meanwhile, carriers elsewhere are facing consumer concerns over increasing fares and jet-fuel shortages. Riyadh Air is currently not experiencing any direct disruption. Douglas stated that the absence of airport closings in Saudi Arabia's capital city has supported demand. Some travellers view Riyadh to be a more stable destination. He said that some people may have come to believe it is a safe exit-entry point. Douglas, who led Etihad between 2018 and 2022, said that early ticket sales are encouraging, but refused to provide figures. Riyadh Air, Saudi Arabia's second national airline after Saudia, will be launched in 2023. It is owned by Saudi Arabia's Public Investment Fund. Douglas describes it as "the largest global aviation startup of modern history" with up to '72 787s, 60 A321neos, and 50 A350s ordered. The airline is a part of the plan for the oil-producing country to diversify their economy by focusing on new industries like tourism, logistics and technology. Douglas, when asked to comment on ticket sales, said that the majority of passengers are from Saudi Arabia. He added that Riyadh Air's cabins were designed to appeal to Saudi Arabia's many under-30s. Douglas stated that Riyadh Air aims to reach more than 100 destinations by 2030. Douglas said that Riyadh Air has so far announced routes to Cairo and Dubai. (Reporting and editing by Louise Heavens, Sarah Young)
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US Transport agency repeals civil rights regulation with 'disparate impacts'
The U.S. Transportation Department announced Wednesday that it will rescind a part of its civil rights regulations, which prohibits conduct that may have an unintentional "disparate impact". Donald Trump has ordered that federal agencies not enforce laws prohibiting policies and practices that have discriminatory effects that are often unintended. Sean Duffy, U.S. Transportation secretary, said that the department's regulations "prohibits only intentional discrimination and not conduct or activities which have a disparate effect", adding USDOT would not take action regarding disparate-impact liabilities. By limiting the so-called disparate-impact liability, which is commonly used in employment-related matters, the government can no longer use a tool that it has been using for years to police discrimination, including in housing, education and lending. FEDERAL DISCRIMINATION ACTS DATE BACK AS FAR AS THE CIVIL WAR The Justice Department stated on Tuesday that the Equal Employment Opportunity Commission's legal advice to prevent disparate impacts for protected groups of workers is wrong, because it only focuses?on results without regard for the employer's intention. Many federal laws prohibit discrimination on the basis of race, gender, religion, and other protected characteristics. Some date back to the decades following the Civil War. The courts had long considered discrimination an intentional act. However, this began to change with the 1964 adoption of the landmark Civil Rights Act. In a case from 1971, the U.S. Supreme Court ruled that neutral employment practices could violate Title 'VII' of the Civil Rights Act if they are disproportionately harmful to a protected group and not "demonstrably" related to performance. Some policies can have a disparate impact on women and people with disabilities. Others may require that new hires are recent graduates of college, excluding many older candidates. Trump and other critics have argued that disparate-impact liability is a legal theory that wrongly assumes discrimination when there are disparities between the outcomes of different groups. Reporting by David Shepardson, Editing by Chizu nomiyama and David Holmes
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China summons giants of state-owned construction companies over safety violations
China's National Safety Regulators summoned China Communications Construction Company, and Power Construction Corporation of China on Wednesday for what they alleged were safety failures related to two major accidents. The emergency management ministry said that negligence, falsifications and illegal subcontracting as well as cutting corners, and failures in safety management at two companies and their subsidiaries led to a road collapse in May 2024 in southern China, which killed 52 people, and a partial collapse in November 2025 of a newly built?bridge in southwest China. The statement said that "the same types of accidents hazards were found repeatedly during inspections but violated repeatedly... the lessons learned are painful." It was not possible to reach the companies for comment after regular office hours. According to a statement, regulators from the State Council, Emergency Management Ministry, Transportation?Ministry, Housing Ministry?and State-owned Asset Administrator?have said that companies must take "concrete" and forceful measures in order to "resolutely avoid and curb the occurrences of'major and extraordinarily severe disaster accidents.
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FAA: red obstruction lights needed for Trump Arch in Washington
The U.S. agency said that the proposed '250-foot (76m) tall Independence Arch of President Donald Trump would require red safety lights, but it 'would not have any impact on safety at Reagan Washington National Airport. Federal Aviation Administration will conduct an aeronautical study next in coordination with National Park Service. According to the preliminary review, Washington's arch would require red obstruction lights. The arch would be 3,000 feet from Reagan National Airport and in the main departure and approach corridor. The FAA requires that buildings over 200 feet from airports have red blinking warning lights to alert?pilots during the night. This includes the nearby Washington Monument, which is 555 feet tall. Trump wants to build the Arch in Washington, across the Potomac River near the Arlington National Cemetery. The Arch is similar to the Arc de Triomphe, but it's much bigger. It is estimated that the height of the arch with Lady Liberty and eagles on top will be 250 feet. This is higher than Lincoln Memorial, and not too far from the size of U.S. Capitol which can be seen in Washington. The Arc de Triomphe is 164 feet tall in Paris. The National Capital Planning Commission approved the project on 4 June, while asking for more information about the impact of the structure on flight paths. A lawsuit was filed to stop the project. The suit claims that allowing construction to continue would cause irreversible damage?to an historic landscape protected in the heart the capital. The lawsuit argues that Congress must approve any "major" new structure in District of Columbia on land administered by the federal government. The?Justice Department argues that Congress approved large structures on the planned site decades earlier and delegated the authority to the National Park Service for their design.
US Energy regulator approves PJM’s rapid-tracked plan for power plant interconnection
PJM Interconnection, a U.S. grid operator, announced on Wednesday that the Federal Energy Regulatory Commission had approved the expedited interconnection process. This temporary process is designed to 'advance large projects of a significant size in order to meet the urgent demand for additional capacity resources. According to the Energy Information Administration (EIA), U.S. electricity consumption, which reached its second consecutive annual record in 2025, is expected to?rise even further in 2026 or 2027 due in part by AI-hungry data centers and electrification.
The approval comes at a time when PJM, along with states?across the footprint of PJM, are seeking to bring online new power generation more quickly in order to meet the rising?electricity demands and maintain grid reliability.
PJM?said that it would consider 10 interconnection requests for each calendar year, under the EIT Plan, for large new capacity resources or upgraded capacities, which, among other criteria have a commitment by a relevant authority to expedite locating.
"FERC's approval for PJM's accelerated interconnection track creates a pathway that will allow qualified generation?projects to be connected onto?the grid in?the next 3 years," stated PJM CEO David Mills.
PJM expects that the projects will be able to?execute a generation interconnection contract within 10 months after submission, and operational within 3 years.
The FERC order will take effect on July 31. The expedited interconnection procedure will last until the end of 2027. Reporting by Pooja menon in Bengaluru, Editing by Mark Porter
(source: Reuters)